Lead a discussion with your family to identify
one family financial goal that must be saved for out of family income.
Choose a goal that has strong personal interest for both you and your
family (a family trip or vacation, a new VCR, or a family car, for
instance).

Discuss the goal in detail (where to go on
vacation, for example, or what kind of car to buy), the cost of the
goal, and when you want to reach the goal.

Discuss how your family could accumulate funds
to reach this goal, how the goal will affect the rest of the family
budget, and how you could help your family achieve the goal.

Do the following:

Prepare a personal budget or spending plan for
three months, including a "pay yourself first" savings plan. Keep track
of everything you buy. Balance all income with expenses and savings at
the end of each month.

Share your three month budget with your merit
badge counselor. Explain how you determined discretionary income (income
not spent to meet fixed expenses), how much you saved, and what you
spent money on. Did you spend more or less than you budgeted?

Do ONE of the following:

Identify a personal financial goal and make a
plan to achieve that goal.

Write down the goal you want to achieve.
(This may be a small, short term goal such as buying clothes, or it
may be a major, long-term goal such as saving for college.)

Develop a financial plan to accomplish the
goal. Determine how much the goal will cost, how much time you have to
reach the goal, how you will earn money to pay for the goal, and what
adjustments you could make if you cannot reach the goal in the desired
time with the income you can earn.

Discuss your plan with your counselor.

OR:

Determine a spending/savings plan for living on
your own.

Choose a realistic job based on your age,
skills, education, and experience (working at a fast-food restaurant,
movie theater, or college library, for example). Determine how much
you would probably make per hour and how many hours you would work
each week. Determine your spendable income (after taxes and other
deductions are taken out) for a month.

Make a list of all basic monthly living
expenses: rent, food, transportation, clothing, telephone, etc. Ask
family or friends, or call sources to help you determine costs.

Compare projected income with projected
expenses. Would you have enough income to live on? Would any be left
over for fun? For savings?

If expenses exceed income, determine what
options you would have for bringing the two into balance. Could you
reduce or eliminate expenses? Work more hours a week? Get a
higher-paying job?

Discuss you final plan with your counselor.

Do the following:

Choose an item you would like to buy. Be
specific. (For example, identify the brand name of a pair of shoes you
want, or the title of a CD.)

Comparison shop for the item. Find out where
you can buy the item for the best price. Call around; study ads. Look
for a sale or a discount coupon.

Consider alternatives. Could you buy the item
used? Should you wait for a sale? (d) Discuss your shopping strategy
with your counselor.

Do ONE of the following:

Visit a bank. Ask a bank representative to
explain checking accounts, savings accounts, loans, and automated teller
machines (ATMs). Explain to your counselor the difference between a
checking account and a savings account. Discuss with your counselor the
minimum requirements to open and maintain the accounts or to take out a
loan.

OR:

Visit another type of financial institution,
such as a stock brokerage firm or an insurance company. Ask a
representative what the firm does and how it works with consumers.
Explain to your counselor the differences in services offered by the
following types of financial professionals: financial planner,
stockbroker, insurance agent, accountant, tax preparer, banker, estate
planning attorney.

Do the following:

Explain the difference between saving for a
goal and investing for a goal.

Explain the two basic methods of investing:
loaned and owned.

Explain the concepts of simple and compound
interest and how compound interest can be used to increase your savings
and investments more rapidly.

Explain the concepts of yield, profit, and
total return, and how they are used to evaluate investment performance.

Explain the basic features of the following
types of investments, including risks and rewards and whether they
involve lending or owning: bank savings accounts, certificates of
deposit, U.S. Savings Bonds, shares of stock, shares in a mutual fund,
real estate.

Do the following:

Explain what a loan is, what interest is, and
how the "annual percentage rate" measures the true cost of a loan.

Choose something you want to buy or do, but
currently cannot afford. Set up an imaginary loan so you can "achieve"
that goal. Identify the "principal" amount, interest rate, and repayment
schedule. Determine the total cost of the loan (principal plus
interest). Determine how it would affect your total cost if you paid
back the same amount every two weeks, instead of once a month.

Explain the differences between a charge card,
a debit card, and a credit card.

Identify the factors that affect the costs of
credit. Tell which factors can be controlled.

Explain the six basic types of insurance and
why someday you might need one or more of them.

Define the two major types of life insurance
(term and permanent) and compare their advantages and disadvantages.

Do the following:

Identify a job or career that interests you and
do basic research about it at your library or through other information
sources. Make a presentation to your troop or counselor about the job or
career. Your report should include:

An explanation of your interest in the job or
career (how you learned of it, what about it that interests you, what
its job prospects are, and how you think the job or career will change
in the future)

Any qualifications required (education,
skills, experiences) and how you might become qualified for the job

The job's functions and responsibilities (the
duties of the job or career)

The organizations, trade associations,
professional associations, governmental regulations, or licenses
involved in the career field

Do ONE of the following:

Prepare a personal resume for the job.

OR:

Interview someone in the job or career field
and prepare a summary of the interview.

Discuss with your counselor your personal goals
and ambitions in life. Relate these to your intellectual, physical,
spiritual, and moral development. How has Scouting helped you in
accomplishing your goals and ambitions? Share your thoughts with your
family.